"We are going through an evolving process here both in terms of the BBC and in terms of cutbacks, it is a changing landscape we are monitoring and watching," said Berkett. "It is absolutely appropriate [the BBC pays toward broadband rollout]. Every element of government spending needs to come under review. I think it is absolutely appropriate what the government has done."

Virgin Media argues that it is appropriate that the BBC pays a share of broadband rollout to rural areas because traditionally it has spent about 5% of the licence fee, about £140m, on the cost of transmitting its channels into homes.

As products such as the iPlayer, and next year YouView, encourage more broadband use and viewing more BBC content, Virgin Media believes it is only right that the corporation pays toward new platforms. In addition the company argues that licence fee payers in rural areas without broadand are paying for services they cannot access.

"We were very disappointed with Ofcom's decision and feel they inappropriately de-prioritised [conducting a review]," he said. "When you have less resources to play with, [Ofcom is] facing a 25% reduction [28.2% in real terms over four years], they have to prioritise what they do and clearly this is a big piece of work, one of the most significant developments since the launch of digital TV."

Berkett said that Virgin Media, which had its formal complaint to Ofcom dismissed, was still reviewing a broad range of options available to continue to pursue a regulatory investigation into YouView.

It is understood that options could include a judicial review, turning to the European Commission, filing an administrative complaint to the BBC Trust to look at its own decision to clear the service, or seeking an appeal against Ofcom's decision.

"Of course they argue it will benefit consumers in the short term but what about the impact on the market and consumers in the medium and long term," said Berkett. "All options are available to us and we are reviewing them."

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